Lionheads Capital, L.L.C. v. Rocky Diesel, L.L.C.

2025 Ohio 1135

• Court: Ohio Court of Appeals
• Decided: March 31, 2025
• Docket: 24CA012128
• Status: Published

Opinion

[Cite as Lionheads Capital, L.L.C. v. Rocky Diesel, L.L.C., 2025-Ohio-1135.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF LORAIN )

LIONHEADS CAPITAL, LLC C.A. No. 24CA012128

Appellee

v. APPEAL FROM JUDGMENT ENTERED IN THE ROCKY DIESEL LLC COURT OF COMMON PLEAS COUNTY OF LORAIN, OHIO Appellant CASE No. 23 CV 208918

DECISION AND JOURNAL ENTRY

Dated: March 31, 2025

CARR, Presiding Judge.

{¶1} Defendant-Appellant Rocky Diesel LLC appeals from the judgment of the Lorain

County Court of Common Pleas. This Court grants Plaintiff-Appellee Lionheads Capital, LLC’s

motion to dismiss and dismisses the attempted appeal as moot.

I.

{¶2} In May 2023, Lionheads Capital, LLC1 filed a two-count complaint naming Rocky

Diesel LLC and the Lorain County Treasurer as Defendants. Count one alleged that Rocky Diesel

LLC defaulted under a cognovit promissory note and count two sought foreclosure on a mortgage

that secured the note. In July 2023, Lionheads Capital, LLC was granted judgment on count one.

1 The record refers to Plaintiff-Appellee as both Lionheads Capital, LLC and Lionshead Capital, LLC. There has been no argument that they are different entities nor is it clear which entity is the correct one. As the judgment entry uses Lionheads Capital, LLC, that is how the Court will refer to Plaintiff-Appellee. 2

{¶3} In March 2024, Lionheads Capital, LLC filed a motion for summary judgment as

to count two. Rocky Diesel LLC opposed the motion, and Lionheads Capital, LLC filed a reply.

The trial court granted the motion for summary judgment in May 2024 and issued a decree in

foreclosure. Rocky Diesel LLC did not move for a stay.

{¶4} Rocky Diesel LLC has appealed the May 2024 judgment, raising a single

assignment of error for our review. Lionheads Capital, LLC filed a motion to dismiss the appeal

as moot. Rocky Diesel LLC did not directly respond to the motion although it did address the

issue in its reply brief.

II.

ASSIGNMENT OF ERROR

THE TRIAL COURT ERRED IN ALLOWING APPELLEE-PLAINTIFF LION[HEADS] CAPITAL LLC[] TO MAINTAIN AN ACTION IN THE LORAIN COUNTY [COURT OF COMMON PLEAS].

{¶5} Rocky Diesel LLC argues in its sole assignment of error that the trial court erred in

granting summary judgment as to the foreclosure claim because Lionheads Capital, LLC lacked

standing to file the action. We do not reach the merits of this argument as the appeal has been

rendered moot.

{¶6} “This Court has consistently held that when a property subject to foreclosure is sold

at sheriff’s sale and confirmed by the trial court and the proceeds of sale have been distributed, an

appeal is moot.” Nationstar Mtge., L.L.C. v. Waisanen, 2017-Ohio-131, ¶ 5 (9th Dist.); see also

MTGLQ Investors, L.P. v. Wagner, 2019-Ohio-1741, ¶ 11 (9th Dist.) (“The mere fact that the []

assignments of error [involve] issues of standing and jurisdiction does not change the fact that

there is no live controversy . . . .”) Here, it is clear that the property has been sold at a sheriff’s

sale and that sale was confirmed by the trial court in a November 2024 entry, which also ordered 3

the proceeds to be distributed. In December 2024, an order of the sheriff’s disbursement was filed

in the trial court.

{¶7} In fact, Rocky Diesel LLC does not dispute these facts. Instead, in its reply brief,

Rocky Diesel LLC asserts that the appeal is not moot because a deficiency judgment exists. When

a deficiency judgment exists, an “appeal remains viable to the extent it challenges the money

judgment the trial court imposed [].” Berkshire Bank v. Macedonia Hospitality, LLC, 2024-Ohio-

2485, ¶ 11 (9th Dist.). First, we note that Rocky Diesel LLC’s initial brief in this appeal does not

appear to challenge the money judgment imposed by the trial court; the brief instead challenges

the trial court’s grant of summary judgment which relates to count two, which sought foreclosure.

In addition, Rocky Diesel LLC only appealed the trial court’s May 2024 entry which issued a

decree in foreclosure. In July 2023, the trial court issued an entry granting judgment in favor of

Lionheads Capital, LLC pursuant to the cognovit promissory note. That entry included Civ.R.

54(B) language. Thus, Rocky Diesel LLC has not demonstrated that it is challenging the money

judgment the trial court imposed in this appeal. Accordingly, this attempted appeal is moot.

III.

{¶8} The attempted appeal is dismissed as moot.

Appeal dismissed.

Immediately upon the filing hereof, this document shall constitute the journal entry of

judgment, and it shall be file stamped by the Clerk of the Court of Appeals at which time the period

for review shall begin to run. App.R. 22(C). The Clerk of the Court of Appeals is instructed to

mail a notice of entry of this judgment to the parties and to make a notation of the mailing in the

docket, pursuant to App.R. 30. 4

Costs taxed to Appellant.

DONNA J. CARR FOR THE COURT

HENSAL, J. SUTTON, J. CONCUR.

APPEARANCES:

ROBERT CABRERA, Attorney at Law, for Appellant.

MELISSA J. WHALEN, Attorney at Law, for Appellee.